Reward Credit Card

Getting
rewarded as you spend money with your credit card makes things interesting for a
credit card holder. The cashback, free gas, free air travel, free shopping,
discounted merchandise and other freebies that a reward credit card brings with
it, add value to credit card ownership. But, there are many things that should
be considered to get the maximum benefits from a reward credit card. Read on to
get familiar with the basics.

Getting the right reward card that 'really'
helps your cause is the first thing that should be kept in mind while going for
a reward card. There is no point in taking a credit card with gas reward if you
don't drive much. Similarly, if you rarely fly, an airline miles reward card
will be worthless for you.

What are the limitations to reward program? Get clear about it. Ask the
credit card agent or representative about store preferences, gas outlets to
which the credit card is affiliated, airlines, blackout dates, travel
restrictions, reward expiry, reward point accumulation and what is required to
earn rewards. A reward credit card with lots of restrictions and difficult to
redeem gift vouchers or reward points will only frustrate things on your end.

A reward program with balance transfer option with 0% intro APR is a good
thing to have. It saves you money on high interest rates, and if used properly
0% intro APR credit card can be a good asset.

A good credit history helps you get a good credit card with excellent reward
programs. Credit cards with reward programs have very low tolerance for
repayment defaults. Generally, if a person defaults the 0% intro APR ceases
instantly and a high regular APR takes its place. Similar things happen to other
rewards. These things are not told, to the customer but are buried in fine
prints. And fine prints control how your reward program behaves under different
conditions. So, it is better to get a good idea about all the things that can
affect your credit card reward program before settling for a particular reward
credit card.

Credit card companies, in an effort to increase their client base provide
credit cards with rewards. Reward cards as they are known bring cashback,
shopping discounts, insurance, travel discounts, hotel discounts and discounts
on business expenses etc. However, it takes more than a casual effort to get the
maximum out of your reward card. This article provides a concise insight on how
make the most of your reward card.

Reward cards generally carry a high rate of interest than a non-reward
credit card. To avail the benefits of a reward card fully, make sure that
you repay your balance in full every month. If you miss on repayments it is
very likely that credit card companies won't reward you.

The cashback mentioned in the reward cards is usually the upper limit. The
amount of cash that you will earn will always be less than the mentioned limit
unless your spending levels with the credit card are very high. So, it will be
better to have a reward card with high cashback limit.

Credit card companies have exclusive tie-ups with stores, vendors, filling
stations, airlines, courier companies, hotels, resorts, hospitals etc. To get
the benefits of rewards the spending has to be done at those very places
mentioned in the credit card, otherwise the rewards might not get credited to
your account.

Some credit card companies give initial reward points, travel miles, airmiles
or shopping discounts when you make your first purchase but they can be redeemed
only when you spend a certain 'high' amount of money with your credit card. Make
sure that the spending limits are low, so that you don't have to burn a hole in
your pocket before getting a glimpse of that reward.

Credit card companies play the tricky game of reward limits, reward expiry,
blackout dates, travel restrictions, etc. to limit the economic impact of
rewards on themselves. Getting a feel about these restrictions and how they will
affect the reward scheme of credit card will give a picture whether credit card
company is duping you or is a genuine reward provider.

Rewards that come with credit card enhance its value and provide additional
services and savings for the credit card holder. But, if a credit card holder is
not smart enough he might end up paying a high interest rate without getting any
reward benefit.